Question

X and Y are partners in a firm sharing profit in the ratio of 3:1. They admitted Z as a

partner. The new profit sharing ratio of firm is 2:1:1. The goodwill of the firm was

valued as Rs 60000. Z agreed to bring Rs 8000 towards his goodwill share only.

Goodwill appeared in books at Rs 6000.​

Answer 1

Explanation:

Goodwill which is appeared in books at rs. 6000 will be distributed between old partners in their old ratio.

For z's share of goodwill, it will be distributed between old partners in their sacrificing ratio

Journal entry will be:-

Cash a/c.... Dr. 8000

To premium for goodwill 8000

Premium for goodwill a/c... Dr. 8000

To x's a/c

To y's a/c

(In their sacrificing ratio or old ratio)